George Osborne has changed the format of the autumn statement Chancellor George Osborne will update MPs on the health of the UK economy when he delivers his autumn statement later.
Mr Osborne will respond to the Office for Budget Responsibility’s (OBR) updated growth forecasts.
His comments will be eagerly followed by financial markets looking to see how well the coalition’s deficit reduction plan is coming along.
Mr Osborne has already announced the next Budget will be on 23 March 2011.
The chancellor has amended the nature of the autumn statement, so that it serves as a response to the OBR’s forecasts.
Under Labour it became a mini-Budget, in which draft tax and spending decisions were outlined.
Initial estimates published last month suggest the economy grew by 0.8% between July and September – twice the rate expected by many analysts.
The OBR – formed in May to make an independent assessment of the public finances ahead of each Budget – is likely to increase its GDP growth estimate for the whole year from the 1.2% predicted in June to nearer 1.7%, the Ernst and Young ITEM Club forecasting group said.
Tax revenues are also expected to exceed forecasts by £10bn, it added.
However, the OBR could lower projections for public sector job cuts by nearly a fifth, the ITEM Club said.
Mr Osborne is expected to deliver his statement to the House of Commons at 1530 GMT.
This article is from the BBC News website. © British Broadcasting Corporation, The BBC is not responsible for the content of external internet sites.